18 June 2010

Deepwater Oil Exploration Realities

The FT reminds us that there is a lot of ocean out there beyond the Gulf of Mexico:

The Gulf of Mexico is still under a drilling moratorium after the BP oil spill but plans to step up deep-water exploration on the other side of the world, in the South China Sea, remain largely unchanged.

CNOOC, the Chinese state-controlled company with exclusive rights to develop China’s offshore resources, ordered safety checks on all its rigs after the BP disaster. But long-term plans still aim to step up deep-water exploration.

“Offshore and especially deep-water oil and gas discoveries have great significance for replenishing China’s and the world’s oil resources,” said Zhou ­Shouwei, CNOOC vice-president, in comments posted on the company’s website on June 10.

“We can’t cancel or stop deep-water oil and gas extraction because of the accident in the Gulf of ­Mexico.” . . .